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The corner of Bay and King streets in the heart of Canada’s financial district. (KEVIN VAN PAASSEN/THE GLOBE AND MAIL)
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Three cheers for boring banking systems
— Financial Times
Published
Last updated
Boring and safe – but not as safe as they seem. Politicians and regulators would love to inhabit a world where banks take deposits and lend locally, and touch none of the highly leveraged, high-yield (if ultimately worthless) stuff that trashed the balance sheets of U.S. and European banks. But can a new world of dull, heavily capitalized, uber-regulated lenders offer the services clients want, or the returns investors seek?